I struggle mixing capitalism into the wonders of psychedelic healing. The psychedelic epiphany seems at odds with free-market ideals like self-interest and greed. Yet, as an entrepreneur, American capitalism is my canvas. I wanted to explore this with other entrepreneurs in the psychedelic space, and had that opportunity at Boulder Startup Week. I brought together psychedelic founders to share their personal journeys and professional insights into this emerging field.
The discussion highlighted that psychedelics are increasingly seen as the next frontier in mental health treatment. Beyond their therapeutic potential, they are also viewed as potentially the next frontier in human consciousness, with entrepreneurs and creatives utilizing them for clarity, purpose, and driving impact. The panel featured individuals who are not only building businesses in the psychedelic space but have also experienced profound personal transformations through psychedelics.
Panelists shared powerful stories about the impact of psychedelics on their lives:
- Sara Lewis, co-founder of Memoru and professor at Naropa University, spoke about using psychedelics for connecting to work purpose and for postpartum healing and parenting journeys, informing her company’s goal to offer family programs.
- Greg Shanken, founder of Gloss and co-founder of the Colorado Psychedelic Society, shared his journey away from SSRIs that left him feeling numb and disembodied, leading him to psychedelic healing starting with Ayahuasca. This experience ignited his passion to serve the psychedelic space and advocate for legalization.
- Courtney Campbell, who founded Portland, Oregon’s first licensed service center, Chariot, stated that psychedelics “saved my life” by helping him overcome anxiety, depression, and substance misuse, allowing him to become the person he was “always meant to be”.
- Mikki Vogt, a therapist and co-founder of Colorado’s first licensed healing center, The Center Origin, found psychedelics helped her process deep grief after years of conventional therapy and SSRIs had reached a wall. She described psychedelics as a “missing bridge” that connects intellectual knowledge with felt bodily sense, enabling clients to move past rigid beliefs and step into their authentic selves.
The Legal Landscape in Colorado
Greg Shanken provided an overview of the current legal framework for psychedelics in Colorado following the passage of Prop 122. There are two main tracks:
- Personal Use Framework: Individuals over 21 are permitted to grow, gift, and transport natural medicines, including psilocybin mushrooms. This track is not designed for businesses or commercial activities like selling mushrooms or guided journeys.
- Regulated Model: This framework is designed for businesses and involves licensed healing centers where individuals over 21 can receive psychedelic medicine services from licensed facilitators in a structured setting.
The first healing center license has been granted in Colorado, with others expected soon. Notably, individuals do not need a diagnosis to participate in the regulated model; they only need to be over 21 and meet baseline requirements, allowing for exploration of therapeutic outcomes, spiritual growth, consciousness, or creativity. Licensed facilitators must undergo specific training.
Navigating the Challenges in a Nascent Industry
Launching and operating a psychedelic business today presents significant legal and operational hurdles. Panelists, particularly those with direct experience in Oregon and Colorado, detailed these challenges:
- Banking: Obtaining bank accounts is difficult due to psychedelics being a federally Schedule I substance. Businesses may face rejection or have funds frozen if their activities are discovered by banks unfamiliar with the space. Finding banks comfortable working with psychedelic companies remains a significant challenge.
- Insurance: This is a “totally new landscape” and is challenging to navigate. What might seem like lower risk (e.g., overnight stays, providing transportation) can actually be seen as higher risk by insurers. Many therapists incorrectly assume their standard professional liability insurance covers psychedelic therapy; specific coverage is often needed and hard to obtain.
- Finding Space: Securing a location for a healing center is difficult as the property often needs to be owned outright by the landlord, and that owner must be comfortable with the planned activities.
- Compliance and Regulatory Burden: The regulated model involves a significant amount of paperwork, forms, and rules to follow, including product tracking. Learning from the cannabis industry’s experience with banking, zoning, permitting, and licensing has been helpful for some pioneers in the psychedelic space.
- Federal Illegality: Despite state-level legalization, the federal Schedule I status creates problems, such as making it difficult for universities to train clinicians due to restrictions on practicum experiences with controlled substances. It also impacts insurance coverage. The 280E IRS tax code, inherited from the cannabis industry, makes it prohibitive to be profitable as a business working with a Schedule I substance unless structuring entities creatively, as expenses related to the substance cannot be deducted.
Ethics and the Tension with Capitalism
The psychedelic space introduces unique ethical considerations, especially given the vulnerability of participants and the historical, sacred use of these substances. Mikki Vogt highlighted the “three bubbles” framework: considering if an action is legal, ethical, and sacred. As a therapist, she faced the ethical question of withholding something potentially beneficial that could help clients with treatment-resistant conditions versus risking her practice. She ultimately chose to serve her clients, embracing the reputational risk and becoming a champion for the movement.
The panel also discussed the tension between the counter-cultural, unity-focused experiences often facilitated by psychedelics and the realities of capitalism. While entrepreneurship is seen as a way to bring goods and services to people, there’s concern that short-term profit-seekers could be damaging. Pioneers in the space are striving to hold themselves and each other accountable to ethical guidelines.
The importance of indigenous reciprocity was raised, acknowledging that many sacred plant medicines have been used in traditional contexts for thousands of years. Not all indigenous lineage carriers are in support of bringing sacred medicines into a regulated model, suggesting synthetic substances like ketamine or MDMA might be more appropriate for such frameworks. This highlights the need to bring voices of dissent forward and continue learning as the field develops.
Accessibility and Cost
A major challenge is the high cost of psychedelic-assisted sessions, averaging around $2,000 in Oregon, which creates an accessibility problem for many. This means that often only those who can pay out-of-pocket can afford these services. Panelists discussed ways to address this:
- Sliding Scale: Many providers work on a sliding scale to accommodate clients with different budgets.
- Foundations and Scholarships: Organizations are creating funds to provide financial assistance and scholarships. (See Althea’s Forward Fund.)
- Alternative Models: Group sessions can help lower costs.
- Practicum Pathways: Utilizing facilitators in training, who are supervised, can significantly reduce costs for clients while providing valuable training experience.
It was noted that while the upfront cost may seem high, it’s important to consider that sessions include preparation and integration time, which can add up to many hours of professional support, comparable to the cost of long-term traditional therapy. Furthermore, these experiences can be profoundly impactful, sometimes achieving significant therapeutic outcomes in only one sessions, unlike traditional therapy which is often weekly.
Looking Ahead
The panel emphasized the importance of preparation and integration, noting that integration is often the most crucial part of the process, helping individuals make sense of their journey and implement changes in their lives.
Overall, the discussion painted a picture of a new, nascent, and challenging industry, but one filled with pioneers driven by personal conviction and a desire to bring transformative healing to others. Success in this space will require creativity, a willingness to navigate complex regulations, and a deep commitment to ethical practices and increasing accessibility.
Sounds fun. Let’s do it.
